### The day has finally come! 

You have probably not been looking forward to this moment, but nonetheless it's coming! Student loan repayments have been on moratorium since 2020 and will resume on October 1st (though interest will have started accruing on September 1st). 

There is still time to be able to prepare healthily for student loan repayments - here are 6 steps!

![](/images/pexels-mikhail-nilov-6963914.jpg)

### 1. Know Where You Stand

The first step to tackling any challenge is understanding it. Take a moment to gather all the details about your student loans – how many you have, the total amount owed, monthly payment amounts, and the interest rates for each loan.

### 2. Incorporate Payments into Your Budget

If you don't have a budget in place, now is the time to create one. Include your student loan payments as an essential expense, just like groceries or rent. By integrating this obligation into your budget, you'll be better equipped to manage your finances and avoid unnecessary stress.

### 3. Pause Excess Savings

While having an emergency fund is crucial, it's important to strike a balance between savings and debt repayment. We typically recommend having $1,000 in a mini emergency fund while paying off debt - having a lot more than that in cash while paying off debt can slow you down, divert your focus as well as not put your money to work harder. 

Consider temporarily pausing (**not ceasing**) excess savings and redirect that towards paying off your student loans.

### 4. Don’t Lend IRS Money For Free

Take a close look at your tax withholding. If you received a large tax refund earlier this year and your situation hasn’t changed, you might be over-withholding and effectively lending money to the IRS at 0%, while accruing interest on your student loans! 

For guidance on adjusting your tax withholding, check out this [blog](https://www.getfinhealthy.com/blog/paycheck-withholding/).

### 5. Thoughtful Repayment Plans

There are now likely more repayment options available to you than before, including income-driven plans that reduce the minimum monthly payment.

As you review your repayment options, it can be tempting to opt for the lowest monthly payment. However, keep in mind that extending the repayment period might accrue more interest over time as well as delay the day when you can be free of debt!

Evaluate each plan's impact on your budget and debt-free timeline. Embrace the challenge of tackling your debt head-on rather than delaying it further.

### 6. Seek Help and Support

You are not alone on this journey! At Hoboken Grace, we are committed to fostering a community where conversations about finances are open and healthy. Don't hesitate to ask for assistance. 

We offer resources such as [Financial Peace University](https://hobokengrace.churchcenter.com/registrations/events/1875066), a practical 9-week class that equips you with the tools for better financial health, as well as [confidential financial coaching](https://www.getfinhealthy.com/checkup/) from experienced individuals who understand the journey firsthand.


6 Steps to Prepare for Student Loan Repayments

As we head into the final stretch of 2022, December inevitably becomes a time when we start to think about fresh starts and the beginning of a new year. If financial wellness is one of your New Year’s Resolutions, there are several money moves you can make in December to set yourself up for success in 2023.   

Consider these 6 ways to make your money go further this year and beyond.

![](/images/pexels-tima-miroshnichenko-6693655.jpg)

**1. Maximize Your Charitable Giving through “Bunching”**

Nonprofits do invaluable work around the world, and there are ways to help the causes you care about in a way that also makes sense for your finances. One of those ways is through charitable gifting and “bunching.” The bunching strategy is when you make multiple years’ worth of contributions in one year to maximize deductions in a high-tax year. It allows you to itemize beyond the standard deduction in the year you bunch all your giving, and take the standard deduction in the “off-years.”

This can also be an impactful strategy for donors experiencing a high-income year or preparing for retirement, since you can maximize your tax benefits when you need it while creating a ready reserve to support charities over time.

**2. Multiply Your Charitable Giving through an Employer Match**

Do you work for a company that offers a match for charitable contributions? It is easy to find out! Charity Navigator offers a search tool on [their website](https://www.charitynavigator.org/donor-basics/giving-101/employee-match-programs/) to find out if your employer offers a charitable match. The match likely has an annual limit. Be sure to keep proof of your gift, which may require providing contact information for a receipt.

If you need a record of your Hoboken Grace giving, just [email us](mailto:giving@hobokengrace.com).

**3. Max Out Your Tax Advantaged Account Contributions**

Contributing to tax-advantaged accounts, such as a 401(k), 403(b), HSA, and 529 college savings plan, can reduce your current year’s taxable income. Take the time to check your accounts and see if you are approaching your annual contribution limits. If there is room in your budget, schedule an additional contribution to max out the full benefit for the year.

*401(k) / 403(b) Contribution Limits*

For 2022, your individual contribution limit is $20,500, or $27,000 if you’re age 50 or older. 

*HSA Contribution Limits*

Maximum contribution amounts for 2022 are $3,650 for self-only and $7,300 for families. The annual “catch-up” contribution amount for individuals age 55 or older is $1,000.

*529 Contribution Limits*

529 plans do not have annual contribution limits. However, contributions to a 529 plan are considered completed gifts for federal tax purposes, and in 2022 up to $16,000 per donor, per beneficiary qualifies for the annual gift tax exclusion.

*IRA Contribution Limits (taxable)*

For 2022, the total contributions you make each year to all of your traditional IRAs and Roth IRAs cannot be more than $6,000 ($7,000 if you're age 50 or older), or if less, your taxable compensation for the year.

**4. Utilize Your Remaining FSA Funds**

Flexible Savings Accounts (FSAs) are a tax-free way to way to pay for medical-related expenses throughout the year. The maximum contribution to an FSA account in 2022 is $2,850, with a carryover limit of $570. Unlike Health Savings Accounts (HSAs), which rollover their savings year to year, FSA funds are “use it or lose it.” You typically have until the end of the calendar year to use any remaining funds. 

There are many things you can buy with your leftover FSA dollars. Some surprising items that are FSA eligible include:

*   Sunscreen

*   Ancestry kits with health reports

*   Air quality products, including air purifiers and air filters

*   Acupuncture and chiropractic procedures

To find a full list of eligible FSA products, check out [FSAstore.com](https://fsastore.com/) or visit the [Amazon FSA and HSA Store](https://www.amazon.com/FSA-Store/b?ie=UTF8\&node=17904040011). 

Note that some employers offer a brief rollover period for FSA funds. Check with your FSA administrator for your FSA fund’s expiration dates.

**5. Apply for Property Tax Relief (Available to Eligible New Jersey Residents)**

The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program provides property tax relief to New Jersey residents who owned or rented their principal residence (main home) on October 1, 2019, and met the income limits outlined below.

*Who is Eligible and What is the Benefit?*

*   Homeowners with income of $150,000 or less will receive $1,500.

*   Homeowners with income of more than $150,000 and up to $250,000 will receive $1,000.

*   Renters with income of $150,000 or less will receive $450.

*   All payments will be issued as checks or direct deposits beginning late Spring 2023. 

*How do I apply?*

*   Homeowners can file online by visiting the [NJ Division of Taxation website](https://www.state.nj.us/treasury/taxation/anchor/index.shtml) or file by phone at

*   1-877-658-2972. Renters must file online.

*   ***\*Filing deadline is January 31, 2023.***

**6. Prepare for Upcoming 2023 Tax Changes**

The IRS [recently announced](https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023) changes to tax year 2023’s standard deductions and tax brackets. 

*Changes to the Standard Deduction*

The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700, up $1,800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900; and for heads of households, the standard deduction will be $20,800, up $1,400.

*Tax Brackets*

Marginal Rates: For tax year 2023, the top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly).

The other rates are:

*   35% for incomes over $231,250 ($462,500 for married couples filing jointly)

*   32% for incomes over $182,100 ($364,200 for married couples filing jointly)

*   24% for incomes over $95,375 ($190,750 for married couples filing jointly)

*   22% for incomes over $44,725 ($89,450 for married couples filing jointly)

*   12% for incomes over $11,000 ($22,000 for married couples filing jointly)

*   The lowest rate is 10% for single individuals with incomes of $11,000 or less ($22,000 for married couples filing jointly).

\*\*Not sure how these tax changes will impact you? \*\*

See our earlier article on How to Calculate and Adjust Your Withholdings [here](https://www.getfinhealthy.com/blog/paycheck-withholding/).

No matter which tax bracket you fall into, it’s important to have a plan in place. If you feel like you could use a little extra help, consider scheduling a free 30-minute FinHealthy Check Up [here](https://www.getfinhealthy.com/checkup/). Your money is hard-earned and you should make the most of it!


6 Money Moves to Make Before Year End

### It’s Open Enrollment season!

A small number of people love nerding out during this time and optimizing their coverage. For the majority of us, however, it’s often a case of checking some boxes and hoping for the best.

I had the privilege of speaking to a member of our community who works as an actuary (the super smart people that calculate the price of insurance) and she gave us some great tips on how to take this open enrollment season to the next level!

![](/images/krakenimages-376KN_ISplE-unsplash.jpg)

### 1. Check your preferred providers are (still) in-network

For the majority of people, using doctors or other medical providers that are in-network is significantly cheaper. It goes without saying, then you should check your preferred providers are in-network, especially if you’re looking to switch to a different insurance carrier.

### 2. Use the free cost estimator tools

Most carriers or employers have cost estimators available for you to simulate and estimate the costs to help you understand the cost implications of the different options available to you.

It may be a bit tedious but 20-30 minutes spent on this could be the difference of thousands of dollars over the course of the year!

### 3. Master your reimbursement accounts

Check out this [article on the difference between FSA and HSA](https://www.nerdwallet.com/article/health/employer-offers-hsa-fsa-whats-difference)… and look to maximize them, especially if you’re in a higher tax bracket.

Remember there are often grace periods even for the “use it or lose it” FSA and if you do end up “losing it” because you over-estimated the amount, it is at least with pre-tax dollars.

### 4. Integrate the emergency fund into your strategy

When calculating the best coverage for your situation, you may calculate that a plan that has higher deductibles is the best option — however, if you don’t have the emergency funds to cover the deductible, you may end up in high interest debt; offsetting any savings you might have gained from insurance.

### 5. Make sure you get Long Term Disability Insurance

If you’ve been with or following us for any length of time, you’ll know that we strongly recommend having long term disability, which covers a portion of your income in the event you become disabled and cannot work. Your employer is almost always the best place to buy LTD insurance and, depending on your situation, you may wish to supplement it with additional coverage. Note: you should purchase coverage with after-tax dollars — this ensures that your payout is not subject to income tax!

### 6. Talk to us if you still need help

All this can still seem confusing. If you need somebody to walk through this with you, or if you don't have access to employer-based options and need help, please don’t hesitate to [reach out to us](https://www.getfinhealthy.com/checkup/) and we’ll do our best to talk through your situation and make sure you’re well-prepared for next year!


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6 Steps to Prepare for Student Loan Repayments

6 Money Moves to Make Before Year End

6 Tips for a Strong Open Enrollment